Small Wonder Budget - 2017 - 18

Philosophy of Modi’s Government, as per Arun Jaitley, our Finance Minister, while presenting the budget, is ‘to Transform, Energise and Clean India’ i.e. TEC India and according to many analysts and media spokespersons, it had succeeded largely in achieving the purpose set.  Even the heading to this editorial - Small Wonder Budget’ is borrowed from the Hindu Newspaper - the phrase used by it while publishing the details of the budget on the first page. 

The Hindu had remarked thus: ‘In a workmanlike Budget, Arun Jaitley maintains fiscal discipline while handing out more to those at the bottom of the pyramid.’ It is really a wonder that the same Hindu in its editorial had words of praise under the opt caption ‘A Fine Balance’: ‘The big bang in this Budget is the shift from unfettered populism. The budget has tried to ease the pain of those most impacted by the adverse effects of demonetisation.’

The Budget is said to be reflecting truthfully ‘His Master’s Voice - thereby indicating Modi’s pet projects such as Make In India, Digital India, Clean India, Electrified India, Skill India etc. are being well taken care of in the budget allocation of funds. 

‘Uttam Budget’ which bears PM’s seal, is said to ‘give something for everyone’ and one reviewer remarked that ‘this budget benefits some and hurts none.’

There are some unique features in this budget. The merger of the Railway Budget with the main Budget thereby helping to plan and develop the transport sector as a whole, the abolition of the Plan and Non-Plan distinction thereby replacing with revenue and capital expenditure enabling to move to an outcome-oriented approach as per the recommendation of the Expert Committee on Efficient Management of Public Expenditure in 2013 itself thereby helping to look at each of the sectors in a holistic manner and avoiding distortions in allocating resources between maintenance of existing assets and creation of new assets are the major reforms initiated by the present Central Government for the first time. As a self-audit on its execution of various items proposed in the budget, Outcome Budget is also to be presented in Parliament.

A few High Lights are listed below: 

ØTotal budget allocation ₹21.47 trillion in 2017-18 - Railway budget is ₹1.35 lac crores - Defence budget ₹2.75 lac crore (excluding orop pension) - Fiscal deficit  to be pegged at 3.2% of GDP. 

Ø₹48,000 Cr outlay for MGNREGA Job Guarantee - Space technology to be used for MGNREGA - Combined allocation for rural, agricultural and allied sectors: rs.1.87 lac crore. - PM Gram Sadak Yojana: 133km/day  - 100% village electrifying process to be complete by target date  of May 1, 2018 under Deen Dayal Yojana - 1 crore pucca houses by 2019 - Pipe to water supply to open-defecation villages - Rs 8,000 crore to be allocated to dairy processing infrastructure fund which will be set up under NABARD - Setup of mini labs by qualified local entrepreneurs in all 648 Krishi Vigyan Kendras Mini - Rs 10 lakh crore set as agricultural loans to farmers in 2017-18. 

ØIntroducing new law to confiscate assets of economic offenders who have escaped country - No cash transaction to be allowed above ₹3 lacs - Cash donation limit to charitable trust reduced to ₹2000 from ₹10000 - Political funding new system- max cash donation reduced to ₹2000 from ₹20000. Entitled to receive donation in cheque or digitise method. New electoral bonds via RBI. Every political party to file returns in time. - No tax on income upto ₹300000 and Income tax rate reduced to 5% from 10% for slab of rs.2.5 lac to rs.5 lac. 

ØElimination of unmanned level crossings on the BG network by 2020 - Railway lines of 3500 km will be laid down - 7,000 stations will be provided with solar power - All coaches will be fitted with bio-toilets by 2019 - Rail safety fund with a corpus of Rs 1 lac crore to be created over a period of 5 years.

ØNew 🏥AIIMS in Jharkand and Gujarat- Energising youth through education, skills and jobs - Skill Development scheme extended to 600 districts through the Pradhan Mantri Kaushal Kendras - Skill Acquisition and Knowledge Awareness for Livelihood Promotion Programme (SANKALP) to be launched for providing market relevant training to 3.5 crore youth. Training in foreign languages to be encouraged at ITIs.

ØDigital Push: Bharat Net funds allocation: ₹ 10,000 crore - to provide high speed broadband in 1.5 lac panchayats at low tariffs. Addhar based payments facility for merchants, excise duty exemptions on point-of-sale machines, iris readers to encourage digital payments, a payment regulatory board in the RBI to regulate electronic payments, and withdrawal of service charge on railway e-tickets.  

Subsidies, which is at ₹ 2.7 lac crore equalling to 1.6% of the GDP - the major 

component being ₹ 2.4 lac crore for food and fertilizer subsidies, are like indirect taxes

affecting natural and genuine economic growth, will never be touched to make them 

available for other developmental expenses because of its political and social 

implications. At least the present Government had ventured to take some initiatives to

plug leakages in the release of various subsidies which is a welcome change.

This budget had bestowed some benefits to the true tax payers as a measure ‘to 

honour the honest’, but, most of them feel that it was not sufficient and enough for 

their sacrifices over the demonetisation. Yet, they had not lost their hopes thinking 

that the present Government will do something in the near future.  

Arun Jaitley needs to be applauded for this unique budget laying a strong foundation 

to achieve a healthy and sustained growth for the country.

Modi had summed up about the budget thus: ‘The budget was associated with our 

aspirations, our dreams, and in a way depicts our future. This is the future of our new 

generation, the future of our farmers. In FUTURE, the F stands for the Farmer, U 

stands for underprivileged which includes Dailt, oppressed, women etc., T stands for 

transparency, technology upgradation - the dream of a modern India, U stands for 

urban rejuvenation-urban development, R stands for rural development and E stands 

for employment for youth, entrepreneurship, enhancement to give a push to new 

employment and boost to young entrepreneurs.

Awakened and Thinking India will definitely make INDIA GREAT for which Modi is 

doing his best.